1 chapter 8 security and control. 2 objectives explain why information systems need special...

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Chapter 8

Security and ControlSecurity and ControlSecurity and ControlSecurity and Control

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OBJECTIVES

• Explain why information systems need special protection from destruction, error, and abuse

• Assess the business value of security and control

• Evaluate elements of an organizational and managerial framework for security and control

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• Evaluate the most important tools and technologies for safeguarding information resources

• Identify the challenges posed by information systems security and control and management solutions

OBJECTIVES (Continued)

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• Challenge: provide network and infrastructure security to a financial services firm in a Web-enabled high-threat environment

• Solutions: outsource to a well-known security firm the task of providing 24 x 7 network and infrastructure monitoring and reporting

• Real-time security monitoring 24 x 7, best practices, online security portal, data mining of network transactions

• Illustrates the role of system and network security in providing customers with service and managing corporate risk in online environments

Wesfarmers Limited Case

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SYSTEM VULNERABILITY AND ABUSE

Why Systems Are Vulnerable

Contemporary Security Challenges and Vulnerabilities

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• Use of fixed Internet addresses through use of cable modems or DSL

• Lack of encryption with most Voice over IP (VoIP)

• Widespread use of e-mail and instant messaging (IM)

SYSTEM VULNERABILITY AND ABUSE

Internet Vulnerabilities:

Why Systems Are Vulnerable (Continued)

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• Radio frequency bands are easy to scan

• The service set identifiers (SSID) identifying the access points broadcast multiple times

SYSTEM VULNERABILITY AND ABUSE

Wireless Security Challenges:

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SYSTEM VULNERABILITY AND ABUSE

Wi-Fi Security Challenges

Figure 10-2

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• Computer viruses, worms, trojan horses

• Spyware

• Spoofing and Sniffers

• Denial of Service (DoS) Attacks

• Identity theft

• Cyberterrorism and Cyberwarfare

• Vulnerabilities from internal threats (employees); software flaws

SYSTEM VULNERABILITY AND ABUSE

Malicious Software: Viruses, Worms, Trojan Horses, and Spyware

Hackers and Cybervandalism

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SYSTEM VULNERABILITY AND ABUSE

Worldwide Damage from Digital Attacks

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• Inadequate security and control may create serious legal liability.

• Businesses must protect not only their own information assets but also those of customers, employees, and business partners. Failure to do so can lead to costly litigation for data exposure or theft.

• A sound security and control framework that protects business information assets can thus produce a high return on investment.

BUSINESS VALUE OF SECURITY AND CONTROL

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Security Incidents Continue to Rise

BUSINESS VALUE OF SECURITY AND CONTROL

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BUSINESS VALUE OF SECURITY AND CONTROL

Legal and Regulatory Requirements for Electronic Records Management

• Electronic Records Management (ERM): Policies,

procedures and tools for managing the retention,

destruction, and storage of electronic records

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BUSINESS VALUE OF SECURITY AND CONTROL

Data Security and Control Laws:

• The Health Insurance Portability and Accountability Act (HIPAA)

• Gramm-Leach-Bliley Act

• Sarbanes-Oxley Act of 2002

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• Electronic Evidence: Computer data stored on disks

and drives, e-mail, instant messages, and e-

commerce transactions

• Computer Forensics: Scientific collection,

examination, authentication, preservation, and

analysis of computer data for use as evidence in a

court of law

BUSINESS VALUE OF SECURITY AND CONTROL

Electronic Evidence and Computer Forensics

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General controls:

• Software and hardware

• Computer operations

• Data security

• Systems implementation process

ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL

Types of Information Systems Controls

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• Input

• Processing

• Output

ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL

Application controls:

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• Determines the level of risk to the firm if a specific activity or process is not properly controlled

ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL

Risk Assessment:

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• Acceptable Use Policy (AUP)

• Authorization policies

ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL

Security Policy:

Policy ranking information risks, identifying acceptable security goals, and identifying the mechanisms for achieving these goals

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ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL

Security Profiles for a Personnel System

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• Downtime: Period of time in which a system is not

operational

• Fault-tolerant computer systems: Redundant

hardware, software, and power supply components to

provide continuous, uninterrupted service

• High-availability computing: Designing to maximize

application and system availability

ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL

Ensuring Business Continuity

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• Load balancing: Distributes access requests across

multiple servers

• Mirroring: Backup server that duplicates processes on

primary server

• Recovery-oriented computing: Designing computing systems to recover more rapidly from mishaps

ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL

Ensuring Business Continuity (Continued)

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• Disaster recovery planning: Plans for restoration of computing and communications disrupted by an event such as an earthquake, flood, or terrorist attack

• Business continuity planning: Plans for handling mission-critical functions if systems go down

ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL

Ensuring Business Continuity (Continued)

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• MIS audit: Identifies all of the controls that govern

individual information systems and assesses their

effectiveness

• Security audits: Review technologies, procedures,

documentation, training, and personnel

ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL

Auditing:

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ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL

Sample Auditor’s List of Control Weaknesses

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TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL

Access Control

• Passwords

Authentication:

Access control: Consists of all the policies and procedures a company uses to prevent improper access to systems by unauthorized insiders and outsiders

• Tokens, smart cards

• Biometric authentication

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• Firewalls: Hardware and software controlling flow of

incoming and outgoing network traffic

• Intrusion detection systems: Full-time monitoring

tools placed at the most vulnerable points of

corporate networks to detect and deter intruders

TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL

Firewalls, Intrusion Detection Systems, and Antivirus Software

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• Antivirus software: Software that checks computer

systems and drives for the presence of computer

viruses and can eliminate the virus from the infected

area

• Wi-Fi Protected Access specification

TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL

Firewalls, Intrusion Detection Systems, and Antivirus Software (Continued)

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TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL

A Corporate Firewall

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• Public key encryption: Uses two different keys, one

private and one public. The keys are mathematically

related so that data encrypted with one key can be

decrypted using only the other key

• Message integrity: The ability to be certain that the

message being sent arrives at the proper destination

without being copied or changed

TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL

Encryption and Public Key Infrastructure

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• Digital signature: A digital code attached to an electronically transmitted message that is used to verify the origin and contents of a message

• Digital certificates: Data files used to establish the identity of users and electronic assets for protection of online transactions

• Public Key Infrastructure (PKI): Use of public key cryptography working with a certificate authority

TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL

Encryption and Public Key Infrastructure (Continued)

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• Secure Sockets Layer (SSL) and its successor Transport Layer Security (TLS): protocols for secure information transfer over the Internet; enable client and server computer encryption and decryption activities as they communicate during a secure Web session.

• Secure Hypertext Transfer Protocol (S-HTTP): used for encrypting data flowing over the Internet; limited to Web documents, whereas SSL and TLS encrypt all data being passed between client and server.

TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL

Encryption and Public Key Infrastructure (Continued)

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TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL

Public Key Encryption

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TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL

Digital Certificates

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MANAGEMENT OPPORTUNITIES, CHALLENGES AND SOLUTIONS

Management Opportunities:

Creation of secure, reliable Web sites and

systems that can support e-commerce and

e-business strategies

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• Designing systems that are neither overcontrolled

nor undercontrolled

• Implementing an effective security policy

MANAGEMENT OPPORTUNITIES, CHALLENGES AND SOLUTIONS

Management Challenges:

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• Security and control must become a more visible and explicit priority and area of information systems investment.

• Support and commitment from top management is required to show that security is indeed a corporate priority and vital to all aspects of the business.

• Security and control should be the responsibility of everyone in the organization.

MANAGEMENT OPPORTUNITIES, CHALLENGES AND SOLUTIONS

Solution Guidelines: